From Nasdaq: 2025-06-25 22:47:00

Rocket Lab USA (NASDAQ:RKLB) has seen a 600% stock surge due to successful rocket launches and new contracts, including the upcoming Neutron rocket, boosting payload capacity significantly.

However, Rocket Lab’s stock may be overvalued at its current level, with a price-to-sales ratio of 35.7 compared to 3.1 for the S&P 500.

Rocket Lab’s revenue has grown impressively, with an 85.4% annual rate over the past three years and a 65.0% increase in the last 12 months.

Despite revenue growth, Rocket Lab’s profitability metrics are weak, with negative operating income and margins.

Rocket Lab shows financial strength with a low Debt-to-Equity ratio of 3.4% and a Cash-to-Assets ratio of 34.1%.

In downturns, RKLB stock has underperformed the S&P 500, indicating low resilience.

Rocket Lab’s overall assessment is neutral, with strong growth and financial stability but weak profitability and downturn resilience. The stock’s high valuation may already reflect optimism, making it vulnerable in volatile markets.



Read more at Nasdaq: Why You Shouldn’t Be Buying Rocket Lab Stock?